SLAs are an important part of any subcontracting and technology provider contract. Beyond expectations for type and quality of service, ALS offers remedies if requirements are not met. Most service providers have standard SLAs – sometimes several, which reflect different levels of service at different prices – which can be a good starting point for negotiations. However, these should be audited and modified by the client and the lawyer, as they are generally favourable to the supplier. Measures should be designed so that bad conduct is not rewarded by both parties. If z.B. a service level is violated because the customer does not provide information on time, the provider should not be penalized. SLAs are an integral part of an IT provider contract. An ALS brings together information about all contract services and their expected reliability in one document. They clearly indicate metrics, responsibilities and expectations, so that in the event of service problems, no party can plead ignorance. It ensures that both parties have the same understanding of the requirements. A compensation clause is an important provision in which the service provider agrees to exempt the client company from possible violations of its guarantees.
The exemption means that the supplier must pay the customer all third-party procedural costs resulting from the breach of the guarantees. If you use a standard ALS provided by the service provider, it is likely that this provision does not exist. Ask your in-house advisor to design a simple provision to include it, although the service provider may wish for further negotiations on this issue. The ALS should contain not only a description of the services to be provided and their expected levels of service, but also metrics to measure the services, obligations and responsibilities of each party, corrective measures or penalties in the event of a breach, and a protocol for adding and removing measures. Select the measures that motivate good behavior. The first objective of any metric is to motivate the corresponding behaviors on behalf of the client and service provider. Each side of the relationship tries to optimize its actions to achieve the performance goals defined by the metrics. First, focus on the behavior you want to motivate. Then test your metrics by placing yourself instead of the other side.
How would you optimize your performance? Does this optimization support the results initially desired? AlS should have two components: services and management. Set a good base number. Defining the right measures is only half the fight. To be useful, measures must be set at reasonable and achievable performance levels. In the absence of solid historical measurement data, you should be prepared to review and adjust parameters later through a predefined process specified in ALS. Depending on the service, the metrics to watch can include: Define carefully.